Intermolecular guidance does not overshadow contract momentum, say Lake Street
Lake Street analyst Jaeson Schmidt says that while he was expecting a stronger Q1 outlook from Intermolecular, he does not believe the story has significantly changed. The company remains on track to see growth resume this year, Schmidt tells investors in a post-earnings research note titled "Softer Guidance Should Not Overshadow Continued Contract Momentum And Attractive Valuation; Reiterating BUY Rating And $3 PT." Further, he's encouraged by the new customer contract and the "strong" gross margin expected in Q1 and throughout this year. Schmidt continues to like the risk/reward opportunity for Intermolecular shares and keeps a Buy rating on the name with a $3 price target.